- Ring Energy (REI, Financial) exceeded Q1 2025 oil production guidance with over 12,000 Bo/d.
- The company completed 7 wells, all surpassing pre-drill estimates.
- Lime Rock acquisition contributed positively, with production exceeding expectations by over 200 Boe/d.
Ring Energy Inc. (REI) reported a robust operational performance for the first quarter of 2025, surpassing oil production guidance with more than 12,000 barrels of oil per day (Bo/d) and total production of over 18,300 barrels of oil equivalent per day (Boe/d). This achievement marks a significant operational milestone, exceeding the company's expectations.
The success of the drilling program was underscored by the completion of seven new wells—four horizontal and three vertical—with all outperforming the company’s pre-drill estimates. This development is indicative of Ring Energy's exceptional execution and technical acumen in well management.
A strategic highlight for the company was the completion of the acquisition of Central Basin Platform (CBP) assets from Lime Rock Resources on March 31, 2025. This acquisition is already proving beneficial, with production exceeding expectations by over 200 Boe/d, averaging above 2,500 Boe/d in the initial weeks post-acquisition. This immediate positive impact underscores the strategic value of the acquisition.
Additionally, Ring Energy achieved a 5% reduction in Lease Operating Expenses (LOE) through operational synergies, further contributing to enhanced profitability. The company has also secured strong hedging positions, covering over 6,300 barrels of oil per day at a weighted average downside protection price of $64.44 per barrel for the remainder of 2025.
Ring Energy’s strategy remains focused on generating free cash flow, disciplined capital spending, and debt reduction, positioning the company solidly in the current market environment.
